I'm not sure how you can give up the GPU market when Intel aspires to be a performance leader and must have some plan to get back into mobile. They have a GPU with bad drivers right now, but instead of axing the division, it would seem more appropriate to get some folks who know software. The duopoly of NVIDIA and AMD are a lot more vulnerable than other players in other markets Intel could expand into.
Intel somehow has the laptop makers absolutely flogging Intel CPUs, to the extent of actually concealing AMD builds from the online picker unless you specifically identify them by model number.
OEMs/ODMs/System Integrators get awards for shipping intel products, but instead of pure cash like in 2000 its hardware and rebates. Until very recently intel was giving out SSDs for free, probably switched to something else since they dont make those anymore.